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Commissioner, supra at 450. Here, Continental’s drivers
testified as to the average amount of the per diem allowance that
they spent on items such as lodging, truck parking, showers,
laundry, and Federal Express charges. Despite the presentation
of this evidence, we hold that petitioners have failed to
establish a basis for deducting 80 percent of the per diem
allowance paid to Continental’s drivers.
Petitioners in this case have raised arguments regarding the
validity of the revenue procedures which we must consider.
Furthermore, unlike in Beech Trucking Co., petitioners in this
case, as noted above, attempted to substantiate the drivers’
travel expenses. We must consider whether this evidence meets
the requirements of section 274(d). Additionally, petitioners
here argue that they are entitled to a 100-percent deduction for
the portion of the per diem allowance that they estimate is
allocable to nonmeal expenses.
I. Whether Petitioners May Deduct 80 Percent of the Per Diem
Allowance Paid to Continental’s Drivers
A. Statutory Framework
Section 162 allows a deduction for all ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on a trade or business. Section 162 enumerates certain
types of deductible expenses, including “a reasonable allowance
for salaries or other compensation for personal services actually
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